What are some alternative policy responses to supply shocks?

Contractionary fiscal policy means cutting government spending and raising taxes to reduce aggregate demand. With higher taxes, consumer spending reduces ... The first chapter analyzes the asymmetric effects of contractionary and expansionary monetary policy shocks on income inequality. Using the Consumer ... Apr 1, 2025 ... Contractionary monetary policy has the opposite effect on GDP, employment, and inflation. The Fed chooses whether to make monetary policy ... Jun 29, 2023 ... What's the latest thinking in fiscal and monetary policy? The Hutchins Roundup keeps you informed of the latest research, charts, ... Nov 26, 2013 ... A higher world interest rate stemming from the contractionary U.S. monetary policy shock therefore may dampen the domestic expenditure in the ... A contractionary MP shock decreases output and inflation rates even under the ELB. •. However, the effects of identified MP shocks on macroeconomic variables ... Expansionary and contractionary policies emphasize however differ and it is safe to say that they are indeed two ends of a spectrum. For instance, expansion ... Monetary policy affects the amount of money in the economy and the costs of borrowing. Find the latest data on interest rates in the UK, US and Eurozone. Jan 23, 2014 ... Central Bank of Solomon Islands maintains tight monetary policy in face of excess liquidity; IMF welcomes stance but tells authorities to ... Aug 10, 2022 ... In this paper we analyse the role of fiscal policy and its debt maturity structure which is producing this "monetary contraction" through its ...